What Is AML (Anti-Money Laundering)?

Under AML rules, financial institutions verify their customers' identities (KYC), monitor transactions, report unusual or suspicious transactions to the competent authorities, and keep records for certain periods. International standards are largely set by the Financial Action Task Force (FATF). The regulation FATF applies to crypto asset service providers, known as the Travel Rule, requires sender and recipient information to be shared between service providers for transfers above a certain amount.

In Turkey, the authority responsible for combating the laundering of criminal proceeds is the Financial Crimes Investigation Board (MASAK). Crypto platforms, defined in the legislation as crypto asset service providers (CASPs), have been considered obligated parties under MASAK legislation since 2021; with Law No. 7518, these platforms have also become subject to the authorization and supervision of the Capital Markets Board (SPK). In the European Union, MiCA and anti-money laundering legislation impose similar obligations.

AML practices on crypto platforms also include detecting addresses linked to illicit activity using on-chain analytics tools. For users, this means identity verification and, for some transactions, additional requests for information about the source of funds. While AML rules increase the legitimacy of the industry, they also bring debates about the principles of privacy and decentralization.